Newgen Software Tech shares jumped 12% today; here's why

Newgen Software Technologies Ltd shares logged a sharp uptick in Tuesday's trade, rising 11.55 per cent to hit a high of Rs 1,282. The strong bounce came after the company shared an update on its recent $1.63 million international order win. "This is with reference to our earlier disclosure dated May 12, 2025, related with execution of agreement by Newgen Software Technologies Company Ltd, a wholly owned subsidiary of the Newgen Software Technologies Ltd, incorporated in Saudi Arabia, and the subsequent clarification sought by BSE via mail dated May 19, 2025 regarding additional details in accordance with the SEBI Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024," it stated.

Newgen briefed that significant terms and conditions of the order included agreements governing the provision of delivery of software license and related services to the customer as part of the agreed scope of work, including annual technical support (ATS). It added that the order has to be executed within a year.

Before this, the company announced that the Indian patent office had granted a patent (No. 565385) for inventing the 'System and Method for Data Compression.' "This patent has been filed for a term of 20 years commencing from April 26, 2017, in accordance with the provisions of the Patents Act, 1970," it stated.

Technically, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 72.07. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-earnings (P/E) ratio of 60.87 against a price-to-book (P/B) value of 14.75. Earnings per share (EPS) stood at 20.70 with a return on equity (RoE) of 24.24. According to Trendlyne data, Newgen has a one-year beta of 1.2, indicating high volatility.

Along with the price action, the scrip saw high trading volume on BSE as well. Around 2.91 lakh shares were last seen changing hands, lower than the two-week average volume of 67,000. Turnover on the counter came at Rs 36.26 crore, commanding a market capitalisation (m-cap) of Rs 17,745.64 crore.

Newgen is a provider of a unified digital transformation platform (NewgenONE) for automating the end-to-end process and comprehensively managing content and communications, backed by artificial intelligence (AI)-based cognitive capabilities, governance and a robust integration ecosystem. The core products of NewgenONE are Contextual Content Services (ECM), Low Code Process Automation (BPM), Omnichannel Customer Engagement (CCM) and Artificial Intelligence Cloud.